8 Replies to “Is capital gains tax deducted at source for shares bought and sold within a year, at the time of selling ?”

  1. no deduction at source. the individual has to show it in the final income tax return and pay taxes accordingly in advance.IIncome tax is applicable if your normal income and income ( if any ) from selling these share exceeds the taxable limit ( rs 1,45,000 for males this year.

  2. To your first question, no taxes are not usually withheld unless you are subject to backup withholding for failure to report or pay income taxes in the past.

    To your second questions, yes the capital gain is taxable. For Short Term sales of less than one year, taxable at your regular rate.

    The tax rate for shares held more than a year is less.

  3. Dear sir

    DO not mix ram with rahim. TDS is completly deffrent the main purpose of the TDS to collect advance taxes and it is mainly in the erea of service industries.

    Since selling of share do not fall in thois ctagory no TDS is deducted on the Profit.

    The law is vey simple . What you to do is calculate your tax liability and pay accordingly. Please note that if your tax liability is above 5000/- you need to pay advance tax also.

    the best way is see a tax consultant in your area.

    [email protected]

  4. Short-term capital gain is not deducted at source in respect of securities transactions
    Short-term capital gain in respect of securities transactions (subject to securities transcation tax under section 115AD) (after September 30, 2004) are taxable at the rate of 10% (for AY 2008-09) and 15% (for AY 2009-10). On this short term capital gains, deduction under sections 80C to 80U is not available.

  5. No capital gains tax are deducted at source…only STT or security transaction tax are deducted at source on each and evry transaction u made……..

    If u bought and sell shares within a year time then u have 2 pay short term capital gain tax which is 15% from 01/04/08 and earlier it was 10%….

    However, u can use ur STT amount by deducting it from the capital or short term gain u made………….and can pay tax on the net balance amount ….

    Ex- ur capital and short term gain are 50,000 and ur STT are 2,000 then u have to pay tax on 48,000 (50,000-2,000)….

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